Head to Head Analysis: First Hawaiian (NASDAQ:FHB) & CPB (NYSE:CPF)

First Hawaiian (NASDAQ:FHB) and CPB (NYSE:CPF) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for First Hawaiian and CPB, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Hawaiian	3	5	1	0	1.78
CPB	0	1	2	0	2.67

First Hawaiian presently has a consensus target price of $26.93, suggesting a potential upside of 0.12%. CPB has a consensus target price of $37.00, suggesting a potential upside of 7.91%. Given CPB’s stronger consensus rating and higher probable upside, analysts plainly believe CPB is more favorable than First Hawaiian.

Volatility & Risk

First Hawaiian has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, CPB has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Dividends

First Hawaiian pays an annual dividend of $1.04 per share and has a dividend yield of 3.9%. CPB pays an annual dividend of $1.16 per share and has a dividend yield of 3.4%. First Hawaiian pays out 47.3% of its earnings in the form of a dividend. CPB pays out 40.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CPB has increased its dividend for 1 consecutive years.

Valuation and Earnings

This table compares First Hawaiian and CPB”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Hawaiian	$1.17 billion	2.83	$276.27 million	$2.20	12.23
CPB	$288.56 million	3.14	$77.48 million	$2.86	11.99

First Hawaiian has higher revenue and earnings than CPB. CPB is trading at a lower price-to-earnings ratio than First Hawaiian, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

97.6% of First Hawaiian shares are held by institutional investors. Comparatively, 88.4% of CPB shares are held by institutional investors. 0.7% of First Hawaiian shares are held by insiders. Comparatively, 1.7% of CPB shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares First Hawaiian and CPB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Hawaiian	23.65%	10.19%	1.16%
CPB	21.17%	13.64%	1.06%

Summary

CPB beats First Hawaiian on 10 of the 17 factors compared between the two stocks.

About First Hawaiian

First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking products and services to consumer and commercial customers in the United States. It operates in three segments: Retail Banking, Commercial Banking, and Treasury and Other. The company offers various deposit products, including checking, savings, and time deposit accounts, and other deposit accounts. It also provides residential and commercial mortgage loans, home equity lines of credit and loans, automobile loans and leases, secured and unsecured lines of credit, installment loans, small business loans and leases, and construction lending, as well as commercial lease and auto dealer financing. In addition, the company offers wealth management, personal installment, individual investment and financial planning, insurance protection, trust and estate, private banking, investment management, retirement planning, and merchant processing services, as well as consumer and commercial credit cards. The company was formerly known as BancWest Corporation and changed its name to First Hawaiian, Inc. in April 2016. First Hawaiian, Inc. was founded in 1858 and is headquartered in Honolulu, Hawaii.

About CPB

Central Pacific Financial Corp. operates as the bank holding company for Central Pacific Bank that provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products and services, including checking, savings and time deposits, cash management and digital banking, trust, and retail brokerage services, as well as money market accounts and certificates of deposit. The company also provides various lending activities, such as commercial, commercial and residential mortgage, home equity, and consumer loans; and other products and services comprising debit cards, internet and mobile banking, cash management services, full-service ATMs, safe deposit boxes, international banking services, night depository facilities, foreign exchange, and wire transfers. In addition, it offers wealth management products and services that include non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation, and planning services. The company was founded in 1954 and is headquartered in Honolulu, Hawaii.